Stroll, Sr’s big investment enables Aston Martin to take a big leap in Formula 1.
Just when it seemed like the Aston Martin car company would have a great future alongside the Red Bull Racing squad, Friday’s announcement said otherwise. Canadian billionaire Lawrence Stroll has purchased 20 percent of the car company and, in 2021, Racing Point Formula 1 Team will become the Aston Martin F1 Works Team. That transition will make the new operation the fourth outfit to become one. Others are Mercedes, Ferrari, and Renault.
Lance (left) and Lawrence Stroll (photo, EssentiallySports)
The backstory is clearly known. Aston Martin, named after the car of the British fictional character James Bond, has struggled to keep up with competitors. The luxury brand has been up for sale for the last two years, seeking help from anyone who has enough clout to buy it. Enter Stroll and son, Lance, who drives for his team. The younger Stroll had success in 2018 at the Azerbaijan Grand Prix, taking third place.
With his $200 million investment (accounting for just over a 17 percent stake in the company), Stroll could increase that investment to 20% upon completion of the company’s plan. He seeks to raise the total to $700 million, including a rights issue from existing shareholders.
Originally, Aston Martin held talks with Chinese carmaker, Geely, the company that makes Volvos. But Aston Martin wanted more of a fundamental change. To boot, sales in China have hit an all-time low, which might have been the reason to invest in Canadian money.
Aston Martin CEO Andy Palmer feels that the deal with Stroll will bring several benefits to the company. “Mr. Stroll brings with him his experiences and access to his F1 team,” Palmer said. “We’ve talked a lot in the past few years about wanting to be clearly rooted in luxury and, obviously, Mr. Stroll knows a lot about luxury.”
Stroll will now join the board as Executive Chairman, replacing Penny Hughes, who has stepped down.
Lawrence Stroll: I look forward to working with them (the board) and with the management team, and to continue to invest in the development of new models and technologies and to start to re-balance production and prioritize demand oversupply.
It’s an energetic vision, too. Not only will Aston Martin go full out as a works unit in F1, but it will also continue competing in the World Endurance Championship (in both Pro and Amateur divisions). There’s more. The company is developing an up-and-coming hypercar, which will be built for next year’s super season.
Lance’s daddy should just buy F1, that way his lame ass son
Might finish in the top half for the next season.